Idea Transcript
International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 02 Issue: 04 | July-2015
p-ISSN: 2395-0072
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FEASIBILITY STUDY OF JUST IN TIME INVENTORY MANAGEMENT ON CONSTRUCTION PROJECT Patil Yogendra R.1, Patil Dhananjay S.2 1P.G.Scholar, 2HOP
Department of Civil Engineering, Rajarambapu Institute of Technology, Islampur, Maharashtra,
Construction Management, Rajarambapu Institute of Technology, Islampur, Maharashtra, India
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Abstract – Abstract: Just in time philosophy has lot of Potentional for managing movement of construction material from manufacturing yard to construction site. The traditional approach to material delivery has been used in construction industry for many years. It is imbedded in the corporate structure as the way to procure materials. Major Construction Industries have been trying to adopt new business initiatives in order to stay alive in the new competitive market place. Companies must strive to create high quality, and Low cost products that can get to the customers in the shortest time possible. Just-in-time production system is one of these initiatives that focus on cost reduction by eliminating non-value added activities. This Paper Deals with Implementing Just in Time Inventory Control Approach on Highway Construction. JIT has Tremendous Effect on Material Delivery Operation. During Implementation of JIT Organization is required, to put desired efforts on all levels of the work. Keywords: just in time, Cost Reduction, Non value added activity.
1. Introduction Increasing Global competition has forced the Indian construction Industries to look for some new techniques to meet the challenges in Construction Industry. During last two or three decades construction environment all over the world has experienced more changes, particularly, the construction environment has become one of the most important elements in creating the value added contents for the products and service [1], [2]. The traditional approach to material delivery has been used in construction industry for many years [3]. The approach created lot of problem to construction industry. Fast development in communication, better quality material and fast material transportation © 2015, IRJET.NET- All Rights Reserved
systems has become global in nature. Construction industry also demands more product variety that means reduced lot size and high flexibility in construction work. Manpower cost has also risen [4], [5]. All these factors tend to increase the material and project cost. But the industry has to maintain the cost at a reasonable level. To overcome material delivery problem just in time method is used for large projects [6[, [7]. Just in Time method application on delivery of concrete is done in Japan. Ready mix concrete is prototypical example of batch process where a customer process releases an order to batch for the supplying process and receives product as a result. This batch process does not allow any inventory of product to be maintained because the product is perishable [8]. Precast concrete supplier examine if contractors are ready to adopt the JIT philosophy for receiving and installing precast concrete components on-site. Lessons are drawn from the empirical findings to determine how contractors can prepare for JIT management of precast concrete components [9]. JIT
principle
was
introduced
by
Toyota
Company in Japan. JIT is a system that produces the required item at the time and in the quantities needed. By using JIT principle we can maintain quality of the entire project and increase efficiency of the workers. JIT principle says that inventories are not more important and should be considered as waste [10], [11]. Conceptually, JIT is an approach that combines difficult objectives of low cost, less space requirement for
material
stock,
high
quality
and
delivery
dependability [12].
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International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 02 Issue: 04 | July-2015
p-ISSN: 2395-0072
www.irjet.net
JIT Implementation depend on supplier .The
Thus, selection of vendors is the critical initial step,
Scheduling: scheduling gives clear idea about daily work. Submit advance schedule to vendor. Make storage facility and safety stock for material. Plan includes date, time, place, quantity, place and no. of equipment .
because selection of vendors affects the construction
3. Case study
character of every supplier is strongly related to the success or failure of any materials-management system.
itself. Therefore, good vendor selection is important for an effective materials-management system, which leads the successful completion of a project [13].
3.1) Introduction about company: Place: Aland (Gulbarga) Type of work: Road Construction
2. CONCEPT OF JUST IN TIME Just in Time (JIT) production is a manufacturing philosophy which increases speed of production. JIT
Type of Road: Black Top Road (Flexible Pavement) Length of Road: 63KM Cost of Project: 37Cr
Concept is, “Company produces only what is needed, when it is needed and in the quantity that is needed”.
.Name of Company: Patil and Company
The company produces only what the customer requests,
State-Maharashtera, Dist-Solapur,
to actual orders, not to forecast. JIT can also be defined
Country-India
as producing the necessary units, with the required quality, in the necessary quantities, at the last safe moment. It means that company can manage with their
Name of Incharge: Vijay Patil Mo No: 9036450000.
own resources and allocate them very easily.
Fig no1: Shows JIT Concept
Various Steps in Implementation of JIT: Source identification: Just in Time means produce right quantity of material at right time. Not before or after the work. Large company has their own source but small construction industry is facing problems in material management. Vendor analysis: vendor is a organization who supplies material to company. Vendor may be single or more it’s depending upon company.
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International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 02 Issue: 04 | July-2015
p-ISSN: 2395-0072
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3.2) JIT Implementation Process: One of the major objectives in implementing a JIT System
Table No 1: Shows ABC Analysis
is to achieve a common goal of the whole company. First step is identification of material delivery problem in
Item
Cost
Annual
Total cost
%
company and provide solution to company. Second step
ory
is Material Quantity Calculation. ABC, HML, VED, SDE
consumpt
Analysis is done. Analysis helps to select material for JIT
ion
Application. Third Step is preparation of JIT plan. Equipment productivity calculated. Find out number of
GSB
1039.80
32445
Cum
3,37,36,31
23.66
A
45.54
A
66.28
A
84.52
B
2,20,59,34
100.0
C
5
0
1
days required to complete work. Plan includes date, place of material delivery, time and no. of equipment
Categ
BM
5399.70
5775
required. Fourth step is vendor selection. Analytical
3,11,83,26 7.5
Hierarchical Process is used for vendor selection. Then material procurement plan prepared. JIT Plan Submit to plant and vendor. Maintain proper communication between site engineer, vendor and plant supervisor.
ABC Analysis:
WMM
1117.50
26460
I&II
2,95,69,05 0
LAYER MURU
362
71820
M
2,59,98,84 0
A class items required tight inventory control, A class tem have high consumption value. Special care must be
SDBC
7639.60
2887.5
taken because consumption value is high and Wastage Creates more economical loss to the company. B class
TOTAL
14,25,46,8
items In between A and C moderately care must be
COST
13.5
taken. B Class items have low consumption value than A Class items but higher consumption value than C Class items. Grouping of ABC items largely used in material management. By using this method we can select items for just in time application.
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Volume: 02 Issue: 04 | July-2015
p-ISSN: 2395-0072
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% COST
Output =
=
= 13.40 x e =
13.40 x 0.76 = 10.38m3/hr.
100
III. Grader
=
no of passes x distance Speed x efficiency = 6X 0.385 (mile)
90
2.3x 0.84
70
)
= 1 hour= 34 cum
40
IV. Paver:
=
Quantity x 60 TIME
20 A
B (murum) 10
C (SDBC) 30
100 Table No: Calculation
% OF ITEMS
2
=
13.44X60
=
22.4 36 cum.
Shows
Equipment
Productivity
EQUIPMENT
EFFICIEN CY
EQUPMENT PRODUCTIVT Y
Volvo930(Grader)
84.33%
34
Paver
84.33%
36
Hywa-1
63.85%
8.44
13.44
Hywa-2
60.24%
8.04
13.44
Hywa-3
84.33%
11.25
13.44
Hywa-5
63.85%
8.46
13.44
Hywa-6
87.95%
11.65
13.44
Hywa-7
87.95%
11.65
13.44
Loading time=Loader cycle time X No of Buckets= 86X5=430sec=7.16min
Hywa-8
87.95%
11.65
13.44
Cycle time = Loading Time = 7.16 min
Hywa-9
60.24%
8.04
13.44
Hywa-10
51.80%
6.83
13.44
Fig No 2: Shows ABC Analysis Graph 3.3) Equipment productivity calculation I.
Hindustan front end loader Production
Loader Output =
=104.78m3/hr
II. Tipper Production No. of bucket loads = =
= 4.56 ≈ 5 buckets
+ Haul Time
= 31 min
+Dump Time
= 2 min
+Return Time
= 18.84 min
Capacity of Tipper
Cycle Time = 59 min
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Volume: 02 Issue: 04 | July-2015
p-ISSN: 2395-0072
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3.4) Monthly Consumption of each item
1) Conventional Method Cost
Total monthly target= 3.5 km
Table No: 5 Shows Material Consumption cost
GSB required for 1 km = 660 cum. (lxbxh)
item
For 3.5 km G.S.B required = 3.5x660=2310 cum. WMM required for 1 km=979 cum.
Quantity (cum)
Cost per (cum)
Total cost
GSB
2310
1039.80
24,01,938
WMM
3426.5
1117.50
38,29,113.75
BM
1039.5
5399.70
56,12,988.15
Total cost=
1,18,44,039.5
For3.5kmWMM Required=979X3.5=3426.5 BM required for 1 km=297 cum.
For 3.5 km WMM Required=297X3.5=1039.5 cum 4) Economical analysis Between Conventional Method and JIT Method 4.1) JIT Method Cost Table No: 3 Shows Material Consumption cost item
Quantity (cum)
Cost per (cum)
Total cost
Table No: 6 Shows Equipment cost Type of item
Type of equipment
Cost per hour/day
Total cost
GSB
2310
1039.80
24,01,938
GSB
GRADER
1500
1,89,000
WMM
3426.5
1117.50
38,29,113.75
WMM
GRADER
1500
2,31,000
BM
1039.5
5399.70
56,12,988.15
BM
PAVER
1500
73500
Total cost=
1,18,44,039.5
ALL 3 MATERIAL
HYWA
4000(PER DAY)
920000
TOTAL COST=
14,13,500
Table No: 4 Equipment cost
Type of item
Type of equipment
Cost per hour/day
Total cost
JIT Method Total Cost for 3.5 km required =
GSB
GRADER
1500
1,05,000
1, 18, 44,039.5+6, 89,000 = 1, 25, 33039.5 Conventional Method Cost saving by using just in time method=
WMM
GRADER
1500
1,26,000
BM
PAVER
1500
42,000
ALL 3 MATERIAL
HYWA
4000(PER DAY)
4,16,000
TOTAL COST=
6,89,000
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1, 18, 44,039.5+14, 13,500 =1, 32, 57,539.5 Total Cost Saving BY using JIIT method is 1.32,57,539.5-1,25,33,039.5=724500 To complete 3.5 km target per month: Conventional method requires 47 days and for just in time it requires 26 days.
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5) Monthly material procurement plan
Developing procurement plans – when to buy, from
Table No: 7 Shows Material Procurement Plan
where and how much Monitoring flow of materials, delivery and consumptions.
(3.5Km)
Name
Quantity
Mon
Vendor
Equipment
Of
of Item
th
name
required
June
Paranjape
HYWA-6
Item
GSB
(CUM) 231
company
13.44(CAPA CITY ALL)
GSB
231
June
Paranjape company
HYWA-6
GSB
231
June
Paranjape company
HYWA-6
GSB
231
June
Paranjape company
HYWA-6 Selection Criteria from Literature
GSB
231
June
Paranjap e company
HYWA-6
WMM
285.54
June
Paranjap e company
HYWA-6
Paranjap e company
HYWA-6
Paranjap e company
HYWA-6
Paranjap e company
HYWA-6
WMM
285.54
June
Vendor evaluation is the ranking of supplier’s performance in terms of quality of material, cost of material, cooperation of vendor to company, document submission within time. Selection of vendor s critical procedure but selection process essentials to large company where investment is more this analysis past performance of vendor is recorded. Rating depends upon vendor performance. Cost, service, cooperation, quality are some things in which vendor maintain his level usually, the most important measure of a supplier's service is his record of past performance. From literature review Selection criterion for Vendor is done. Five criteria are selected such as cost, quality, providing document in time, service and cooperation. For Murum Hindustan Company, Trimurti Company, Moraya Company are the Vendors. For GSB and WMM- Paranjape Company is vendor and for BM and SDBC- RUDRA COMPANY is Vendor.
Rating of Criteria by using questionnaire filled by experts from industry. Development of Hierarchy Synthesis of Priorities Measurement of Consistency Selection of Vendor
WMM
WMM
285.54
285.54
June
June
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Fig No 3 Shows AHP Process:
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p-ISSN: 2395-0072
Description of item
GSB
Date
1.6.2015
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Time of delivery of material
Quantity
Place
Equipment
(cum.)
(chainage)
Required
9:00 TO 1:00
124.2
2+400
Hywa=4
To
Grader=1
5+900
Hywa=4
2.00 TO 5:30
108.2
Table No: 8 Shows JIT Implementation Plan (3.5Km)
Study of causes of delay in material delivery on site:
Grader=1
GSB
2.6.2015
9:00 TO 1:00
124.2
108.2
2+400
Hywa=4
To
Grader=1
5+900
2.00 TO 5:30
Hywa=4 Grader=1
GSB
3.6.2015
9:00 TO 1:00 2.00 TO 5:30
124.2
108.2
2+400
Hywa=4
To
Grader=1
5+900
Problem: Improper Communication between site engineer, plant supervisor and vendor We observed improper communication between plant supervisor and engineer during Construction Work. This is a first reason about late material delivery. We suggest to engineer and vendor, prepare plan and according to that communicate each other. Second Problem is poor fleet management. There is no proper special staff for fleet management. Managers not maintain record of inspection and maintains of fleet. Manager not careful about fuel purchasing system. We suggest to company for preparation of plan for fleet replacement. Company must have proper fuel purchasing system. Third problem is poor planning of material delivery. We suggest to company for vendor selection. Prepare monthly procurement plan. We submit JIT plan to company. JIT Plan helps to company to reduce cost of construction
Hywa=4 Grader=1
GSB
4.6.2015
9:00 TO 1:00 2.00 TO 5:30
124.2
108.2
2+400
Hywa=4
To
Grader=1
6. CONCLUSIONS: 1) JIT Method used to complete 3.5 Km. as per plan The Completion of 3.5 Km Road Construction work .JIT Method Required 26 days. Conventional Method takes 47Days to Complete Same Target. 2) JIT Method Saves 5% Cost of Construction.
5+900 Hywa=4 Grader=1
3) No of Tipper used During JIT Application 104. No Of Tipper Used during Conventional Method 230.JIT Method Helps to Reduce equipment Required.
4) During JIT Application Material Production was 100% as per target. But Conventional affects material production. As Per Conventional Method Material Production was only 50% as per Target.
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International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 02 Issue: 04 | July-2015
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8. REFERENCES: 1] Delbridge R., 1995, “Surviving JIT: control and resistance in a Japanese transplant”, Journal of Management Studies, Vol. 32, pp: 803-817. 2] Ebrahimpour, M. and Schonberger R. J., 1984, “The Japanese Just-in-Time/Total Quality control production system: potential for developing countries”, International Journal of Production Research, Vol.22, pp: 421-430 3] Garg, D., 1997, “Relevance of JIT purchasing in Indian industries”. 4] Vikas Kumar., 1992, “Employee involvement in JIT success: Eicher experience”. Productivity, Vol: 33, pp: 366-369.ISSN: 09755] D.K Singh and Satyendra SINGH (1997). Managing productivity in construction.JIT operations and measurements.
7] Low siu pheng and Choong Joo Chuan , ‘’ Just in time Management of precast components’” 8) Iris D. Tommelein1 and Annie En Yi Li2,(2001) “Just in Tme Concrete Delivery”. 9) By Low Sui Pheng1 and Choong Joo Chuan2, “Just in Time Management on Precast Concrete Components” 10] Williams J. “ready mix concrete supply’. 11] Ankintoye, A.1995, Just in time application and implementation for building material management’. 12] Gupta y.p a feasibility study of JIT Purchasing systems implementation in a manufacturing facility.” International journal and production management. 13] Monden, Toyota Production system [institute of industrial engineerin
6] Bandyopadhyay, j.k and jay ram, “implementing just in time production and procurement strategies”. International general and management 83-9
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